Should the United States Government Further Increase Interest Rates?
2022 has been a difficult year for the U.S. economy. Supply chains have been slowed down due to COVID-19 restrictions in China and around the globe, while inflation has skyrocketed, straining the finances of average Americans. One policy measure that government officials have begun to enact is quickly increasing interest rates in order to tighten the money supply and “cool down” the economy.,
Those who argue that the United States government should further increase interest rates claim that doing so will combat inflation. They contend that since inflation is a result of too much money in the economy, increasing rates will lead to fewer people borrowing money and show down economic activity. They argue that the economy needs to slow down in order to decrease inflation, and that causing a short-term economic downturn is necessary in order to prevent larger issues.
Those who argue that the United States government should not further increase interest rates claim that doing so will lead to an economic downturn which could quickly get out of control and lead to a severe recession. They contend this would lead to problems for all Americans ranging from increased unemployment to retirement accounts decreasing in value because of a falling stock market. They also argue that higher interest rates will prevent many Americans from being able to afford things like homes and cars.
So, what do you think? Should the United States Government Further Increase Interest Rates? Students may answer Yes, it should; No, it should not; or a nuanced answer in between!
Note: Ideal Think the Vote responses include the following:
- Address the question asked in a thoughtful and meaningful manner
- Use cited facts and constitutional arguments when appropriate to support their answers
- Are expressed in cohesive sentences and are free of distracting spelling, punctuation, and grammatical errors
- They address counterarguments and opposing concerns in a respectful manner
- They organize their answer in a manner that flows logically and reads clearly
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